Since I found myself writing a novel's worth in response to
vriddy's post about Late Stage Capitalism: The Enshitification model in the comments section, I thought I would do the "modern day social media" thing and also share to my own journal:
In my own opinion - In a capitalistic culture: Communities are not profitable. When you work to make them profitable, that is when user experience starts to go downhill and you get to enshitification. Because at that point, you are exploiting your user base. That is not to say you
can't make
any profit off of them - I do firmly believe businesses
should be able to make profit, but I believe the financial value of such community spaces is not "Daddy Bezos" levels of money.
To pivot slightly for a moment, last year, Amazon
finally announced they are selling their Alexa devices at cost (Google is in a similar boat, Apple is just eating the cost of Siri as part of the cost of doing business because Siri is baked into all of their hard/soft ware devices), and thus
Amazon lost $10B last year. For simplification, I will just refer to these smart home assistants as "Alexa" (that was the NSA Listening device I invited into my home and Amazon was the company I saw mentioning this)
Here is the thing about the Alexa devices -They are incredibly useful and users
love them. Alexa devices get used to turn on/control the lights, set timers, set alarms, turn on/control the thermostat in the home, turn on/control the smart vacuum in your home, a personal jukebox for music, reading aloud audiobooks or podcasts. They are incredibly useful at all of these things and this has an inherent value to the individuals (like me) who use these devices. However...with the way Alexa is set up today - none of these use cases generate profit. No one in the capitalistic world gives a shit about personal data for when someone wakes up, goes to bed, takes a nap. If they care about things like what podcasts, audiobooks or music you are listening to or your location, they have that data elsewhere (Amazon has that data on Amazon music already for example, but I use Spotify with Alexa, so Spotify has my music user data). On paper, this device just cannot be profitable in traditional capitalistic models. That does not mean it does not have
value just that the value isn't seen in Capitalism.
Online communities are the same way - A wide swatch of users want to use online spaces to talk about/share things that are not profitable in the traditional capitalistic model (porn, fanfic, fandom, creative agony aunt writing, in depth reviews/critiques about shows/books/music/games/videos/Content Creators, finding other people to engage with an activity together).
I don't think Online Communities
had any kind of Capitalistic Profit model until Facebook became big and changed the game. Message boards in the 2000s certainly weren't asking for money (and the ones I was on seemed to be run by individuals who ran the forum as their form of hobby - not dissimilar to people who buy up cars and work on them for "free" or people who buy up a server and learn software coding, or people who would buy a domain name + web hosting to make their own personal blog). The concept of "hustle culture" (your hobby
must be profitable) wasn't really a thing back then. Whether it was not a thing because downward financial mobility hadn't yet started, or it wasn't a thing because there was no "Internet" to connect you to people who wanted to buy your RenFaire jewelry year round, I am not sure.
If we look at reddit specifically, we can see the evolution from "I was born in the days when online spaces were hobbyist pursuits, even by the people who were creating the space/paid for the servers" to "I now exist in an era where it is expected these hobbyist pursuits will generate income for myself/my family."
Reddit originally was an online community that was clearly not designed to be "the next best" profitable thing. It was just an online community of anonymous people with rules against doxxing people. People joined (or didn't!) for the culture at reddit. Slowly over the years, the owners of Reddit started thinking about how to take the online community they have (that they clearly were able to afford to pay to run and I
assume they were able to pay a living wage to their staff) and generate even
more money off of their user base. They were thinking "what is the 'next step' for my business?" There was no thought on "What purpose does my business serve for others" and no thought on "Does it even make
sense for my business to be traditional Capitalism profitable?"
Slowly reddit started to implement more and more modern social media - you now
must have at least an email address to sign up (in the past you could just pick a user name and password and go - if you wanted to run off and get married to that username, you
could add your email address, but it was not required). My front-page started showing me posts designed to "suck me in" and keep me on reddit for
hours rather than content I was originally there for or the niche content from the less popular subreddits I was on. And then the decision to kill 3rd party apps happened. Not because reddit needs money - they seem to be fine from the quick 5 minute google search I did (they seem to have the same over inflated value popular with many social media businesses). In the past, when reddit has needed money to cover servers, they have reminded people about Reddit Premium and asked for money...Reddit Premium
still exists. It is $5.99/mo ($49.99/year), it creates the ability to gift users badges, and it allows you to surf reddit ad free (there's a few other features I never used/cared about).
It is completely understandable for individuals to want their business to be profitable, but if you're looking to get onto a Forbes list, communities just are not the way to do it. Communities are full of human beings being
human and Capitalism has a long history of showing humans being
human is
not profitable unless you are exploiting them (slavery
immediately comes to mind - it is well and alive today and is a huge help in creating our electronic devices).
Edit to Add: An example of online content that is not profitable under the traditional capitalistic model: Wikipedia. They regularly have to do fund raising and ask visitors to donate.
Wikipedia's business model depends heavily donations. To note, Wikipedia
does have a direct path to profitability - just go private in the education sector and hide behind an expensive paywall like the majority of educational material existing in Capitalism looking to make a profit does (whether it is classes, textbooks, medical journals, research journals, etc).